Introductory Note
Prior to the April 19, 2024 closing of the Asset Sale described below,
First-Quarter 2024 Financial Highlights
- Revenues: Revenues were
$36 million , a decrease of 63% YoYCore Marketplace revenues were$11 million , down 61% YoY- Product Boost revenues were
$3 million , down 63% YoY - Logistics revenues were
$22 million , down 63% YoY
- Net Loss: Net Loss was
$59 million , compared to a net loss of$89 million in the first quarter of fiscal 2023- Net Loss per share was
$2.43 , compared to a loss of$3.83 per share in the first quarter of fiscal 2023
- Net Loss per share was
- As of
March 31, 2024 , we had$250 million in cash and cash equivalents - After quarter-end, we completed the sale of substantially all of our assets.
Company Update
As previously disclosed, on April 19, 2024, we completed the sale of substantially all of our assets to
As a result of Asset Sale, the Company had approximately
“We are very pleased to have completed the previously announced sale of the Wish ecommerce platform to Qoo10. On behalf of the entire
Following the completion of the Asset Sale,
First Quarter 2024 Condensed Consolidated Financials
The following tables include unaudited GAAP financial highlights for the periods presented:
Revenue
(in millions, except percentages; unaudited)
Three Months Ended | |||||||||||
2024 | 2023 | YoY% | |||||||||
Core marketplace revenue | $ | 11 | $ | 28 | (61 | )% | |||||
ProductBoost revenue | 3 | 8 | (63 | )% | |||||||
Marketplace revenue | 14 | 36 | (61 | )% | |||||||
Logistics revenue | 22 | 60 | (63 | )% | |||||||
Revenue | $ | 36 | $ | 96 | (63 | )% |
Other Financial Data
(in millions, except percentages; unaudited)
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net loss | $ | (59 | ) | $ | (89 | ) | |
% of Revenue | (164 | )% | (93 | )% |
Second Quarter Fiscal 2024 Financial Guidance
Due to the sale of operating assets and liabilities in the Asset Sale,
About
For more information on
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding the strategic alternatives considered by our Board of Directors, including the decisions taken thereto and alternatives for the use of the Post-Closing Cash and our continued listing on Nasdaq. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “foresees,” “forecasts,” “guidance,” “intends” “goals,” “may,” “might,” “outlook,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “targets,” “will,” “would” or similar expressions and the negatives of those terms. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: risks associated with our ability to identify and realize business opportunities following the Asset Sale; risks associated with our implementation of such business opportunities, if any are realized after the Asset Sale; and risks associated with our ability to utilize our NOLs and other tax attributes following the Asset Sale and risks associated with our continued listing on Nasdaq. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and additional risks that could affect Wish’s results is included in its filings with the
Consolidated Balance Sheets
(in millions)
(unaudited)
As of | As of | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 250 | $ | 238 | ||||
Marketable securities | 55 | 144 | ||||||
Funds receivable | 8 | 7 | ||||||
Prepaid expenses and other current assets | 18 | 21 | ||||||
Total current assets | 331 | 410 | ||||||
Property and equipment, net | 3 | 4 | ||||||
Right-of-use assets | 5 | 5 | ||||||
Other assets | 3 | 4 | ||||||
Total assets | $ | 342 | $ | 423 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 17 | $ | 30 | ||||
Merchants payable | 66 | 74 | ||||||
Refunds liability | 2 | 2 | ||||||
Accrued liabilities | 79 | 90 | ||||||
Total current liabilities | 164 | 196 | ||||||
Lease liabilities, non-current | 4 | 6 | ||||||
Other liabilities | 10 | 4 | ||||||
Total liabilities | 178 | 206 | ||||||
Stockholders’ equity | 164 | 217 | ||||||
Total liabilities and stockholders’ equity | $ | 342 | $ | 423 | ||||
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenue | $ | 36 | $ | 96 | |||
Cost of revenue(1) | 30 | 76 | |||||
Gross profit | 6 | 20 | |||||
Operating expenses: | |||||||
Sales and marketing(1) | 15 | 37 | |||||
Product development(1) | 22 | 51 | |||||
General and administrative(1) | 22 | 25 | |||||
Total operating expenses | 59 | 113 | |||||
Loss from operations | (53 | ) | (93 | ) | |||
Other income, net: | |||||||
Interest and other income, net | — | 4 | |||||
Loss before provision for income taxes | (53 | ) | (89 | ) | |||
Provision for income taxes | 6 | — | |||||
Net loss | (59 | ) | (89 | ) | |||
Net loss per share, basic and diluted | $ | (2.43 | ) | $ | (3.83 | ) | |
Weighted-average shares used in computing net loss per share, basic and diluted | 24,315 | 23,246 | |||||
(1) Includes the following stock-based compensation expense:
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cost of revenue | $ | — | $ | 1 | ||||
Sales and marketing | 1 | 1 | ||||||
Product development | 5 | 16 | ||||||
General and administrative | 3 | 8 | ||||||
Total stock-based compensation | $ | 9 | $ | 26 | ||||
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (59 | ) | $ | (89 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 1 | 1 | |||||
Noncash lease expense | 1 | 1 | |||||
Stock-based compensation expense | 9 | 26 | |||||
Other | (1 | ) | (4 | ) | |||
Changes in operating assets and liabilities: | |||||||
Funds receivable | (1 | ) | 9 | ||||
Prepaid expenses, other current and noncurrent assets | 3 | 5 | |||||
Accounts payable | (13 | ) | (13 | ) | |||
Merchants payable | (9 | ) | (10 | ) | |||
Accrued and refund liabilities | (10 | ) | (15 | ) | |||
Lease liabilities | (2 | ) | (2 | ) | |||
Other current and noncurrent liabilities | 6 | (1 | ) | ||||
Net cash used in operating activities | (75 | ) | (92 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of marketable securities | — | (125 | ) | ||||
Maturities of marketable securities | 90 | 85 | |||||
Net cash provided by (used in) investing activities | 90 | (40 | ) | ||||
Cash flows from financing activities: | |||||||
Payments of taxes related to RSU settlement | (1 | ) | (3 | ) | |||
Net cash used in financing activities | (1 | ) | (3 | ) | |||
Foreign currency effects on cash, cash equivalents and restricted cash | (2 | ) | 1 | ||||
Net decrease in cash, cash equivalents and restricted cash | 12 | (134 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 238 | 513 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 250 | $ | 379 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets: | |||||||
Cash and cash equivalents | $ | 250 | $ | 371 | |||
Restricted cash included in prepaid and other current assets in the condensed consolidated balance sheets | — | 8 | |||||
Total cash, cash equivalents and restricted cash | $ | 250 | $ | 379 | |||
Supplemental cash flow disclosures: | |||||||
Cash paid for income taxes, net of refunds | $ | 1 | $ | — | |||
Supplemental noncash investing activities: | |||||||
Purchase of property and equipment included in accounts payable | $ | — | $ | 2 |
Contact
Investor Relations:
ir@contextlogicinc.com
Source:
2024 GlobeNewswire, Inc., source